Environmental compliance cost containment: Avoiding contractor conflict of interest

Conference · Sat Dec 31 04:00:00 EST 1994

OSTI ID:49359

Gaither, B E; Steinborn, T L ^[1]

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1. Applied Research Associates, Inc., Albuquerque, NM (United States)

Environmental compliance projects may be broken down into the two functional aspects of program management and project operations. When both compliance functions are administered by a single entity, conflicts of interest may arise when the selected consulting firm both recommends and oversees its own work. The result is often poor allocation of resources, excess cost, and diminished technical quality. Small to mid-sized companies sub-contracting with ``full service`` environmental providers are particularly susceptible to these problems. The use of a second, independent environmental program management consultant to assist the owner in technical management, quality assurance, and compliance can help minimize these problems. Lifetime environmental compliance costs can be contained by separating the responsibility for the two functions. A model is presented in which smaller companies head an organizational structure including independent program management/compliance and operations contractors. The capabilities and qualifications required to perform the separate functions differ substantially, as do the criteria for evaluating potential providers. The model recognizes the vastly different nature of the responsibilities and work embodied by the two functions.

• OSTI ID: 49359
• Report Number(s): CONF-941189--; ISBN 1-56590-016-2
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
COMPLIANCE
ECONOMICS
ENVIRONMENTAL POLICY
LEGAL ASPECTS
MATHEMATICAL MODELS